THE STATE BANK
SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
 
No. 02/2007/TT-NHNN
 
Hanoi, 21 May 2007
CIRCULAR
ON AMENDMENT OF PARAGRAPH 5 IN THE CIRCULAR NO. 07/2006/TT-NHNN DATED 7 SEPTEMBER 2006 OF THE STATE BANK PROVIDING GUIDANCE ON PURCHASE AND SUBLEASING ACTIVITY IN FORM OF FINANCE LEASING AS PROVIDED FOR IN THE DECREE NO. 16/2001/ND-CP DATED 02/5/2001 AND THE DECREE NO. 65/2005/ND-CP DATED 19/5/2005 OF THE GOVERNMENT
On 7 September 2006, the State Bank issued the Circular No. 07/2006/TT-NHNN providing guidance on purchase and subleasing activity in form of finance leasing as stipulated in Decree No. 16/2001/ND-CP dated 2 May 2001 and the Decree No. 65/2005/ND-CP dated 19 May 2005 of the Government (hereinafter referred to as Circular No. 07/2006/TT-NHNN). For the unanimous implementation, the State Bank amends the content of paragraph 5, Circular No. 07/2006/TT-NHNN as follows:
1. Paragraph 5 is amended as follows:
“5. Currency used in the purchase and subleasing transaction, purchase and subleasing transaction in foreign currency
5.1. Currency used in the purchase and subleasing transaction shall be Vietnamese Dong.
5.2. Purchase and subleasing transactions shall only be performed in foreign currency if they satisfy following requirements:
5.2.1. Conditions
a. The conditions as provided for in paragraph 2, Circular No. 05/2006/TT-NHNN dated 25 July 2006 of the State Bank guiding several contents relating to finance leasing activity and service of finance leasing entrustment in accordance with provisions in the Decree No. 16/2001/ND-CP dated 2 May 2001 and the Decree No. 65/2005/ND-CP dated 19 May 2005 of the Government.

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b. For leasing assets: they must be machines, equipment, transport means and other immovable assets which were imported;
c. For finance leasing company: it must be the finance leasing company authorized to perform finance leasing operation in foreign currency in accordance with provisions of applicable laws on foreign exchange.
d. For lessee:
- The lessee must have legal income source in foreign currency or be entitled to buy foreign currency at credit institution which is authorized to engage in foreign currency trading;
- The lessee has outstanding foreign currency loans at bank for importing leasing assets, or the lessee imports or entrusts the import of leasing assets and has not yet made debt repayment to foreign party.
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